Green-Washing and Degree of Transparency in the Extractive Industry Sector in East and West Java

Abstract

This study aims to investigate the relationship between greenwashing and information transparency in the context of extraction companies in Indonesia. A mixed qualitative-quantitative approach was used, a SEM-PLS approach to test the relationship between the variables identified in the theoretical framework, then a grounded theory approach to gain an in-depth understanding of greenwashing practices and information transparency. The quantitative approach utilizes a structured survey to collect data from extraction companies in Indonesia, while the qualitative approach involves in-depth interviews with relevant stakeholders. SEM-PLS analysis will be used to test the proposed hypotheses and estimate the structural model at the extractive industry company level. Contextual factors such as environmental dimension, social dimension and governance dimension will be considered in the quantitative analysis. Then the findings of SEM-PLS analysis will be triangulated with qualitative approaches inductively to identify patterns and themes. Various findings at the extractive industry company level will be drawn to form a general abstraction of these companies. The integration of findings from both approaches will provide a holistic understanding of the complexity of the relationship between greenwashing and information transparency in the extraction industry in Indonesia. This research is expected to provide valuable insights for practitioners, policy, and researchers interested in efforts to improve environmental practices and corporate accountability in the extraction industry, as well as promote sustainable natural resource management. The expected output is the implementation of transparency and accountability in the extractive industry sector without any greenwashing practices from the Company. So as to increase substantial democratization in the extractive industry sector.